Organizational structure refers to the way in which a company or organization arranges its internal hierarchy and roles. It defines how tasks are divided, coordinated, and supervised, impacting communication and decision-making processes. Common structures include functional, divisional, and matrix models, each serving different strategic needs. A well-defined organizational structure helps clarify responsibilities and improves efficiency. It allows employees to understand their roles within the larger context of the organization, fostering collaboration and accountability. By aligning structure with business goals, organizations can adapt to changes in the market and enhance overall performance.